Starbucks Opens Development Center on Shanghai Outskirts

Starbucks opened a $220 million development outside Shanghai on Sep 19, indicating that established multinationals are still looking to China for growth despite the country's shaky post-COVID recovery.

The American Chamber of Commerce in Shanghai released a survey on Sept 19 that found optimism among US businesses in China at a "record low," blaming the sluggish economy and Washington-Beijing tensions.

However, Starbucks' "Coffee Innovation Park," which includes a roasting plant and distribution center, is the company's largest investment in any such project outside of the United States, according to a news release issued on Tuesday.

"Starbucks' best days are ahead in China," a company spokesperson told AFP via email when asked about business sentiment in the country.

"As Starbucks' largest and fastest-growing international market, we will continue to deepen our investment and reinforce our unwavering long-term commitment to the China market," CEO Laxman Narasimhan was quoted as saying in the release.

Narasimhan visited China in May, when he met the mayor of Shanghai, according to state media.

His trip took place as other CEOs of major multinational companies flocked to the world's second-largest economy to shore up business support post-COVID - including Apple, Tesla, JP Morgan and General Motors.